Forex Predictions For 2010 - Where is the Euro-Zone Currency Headed?

The Euro is the currency that's in the news these days with big problems in Greece and other Euro-zone countries. The market has turned volatile due to the Euro so this is a good time to provide some Euro predictions for 2010 and see where the EU currency is likely to be headed.

As with any prediction, what I write here is my own opinion only. You can act on it or choose not to. I only offer what I believe to be true. However, back in January I wrote that I believed that the Euro will experience drops in value in 2010. So far, it seems I was right so I hope that this, more current prediction of the Euro, will also prove true.

Since January, the Euro is on a slipper road, going from 1.4000$ to lower then 1.2500$, something that was unimaginable just a few months ago. There are many euro predictions made by analysts that state that the European currency will continue to fall all the way to 1.1000$ and even lower. Some say it may even become lower than the American currency itself.

I happen to agree that the weakness of the Euro will continue throughout 2010. I don't like to say that it will reach this value or that one because such statements are usually inaccurate. However, I believe that the downward trend is the dominant one at the moment. Forex Predictions For 2010

Here is why I predict that the Euro will continue to go down in 2010 (or at least nor recover):

1. The US economy is still showing signs of improvement while those of the Euro-zone are showing weakness and uncertainty.

2. The political status of several European leaders is in doubt. The French and German leaders have weakened in local elections and in the polls.

3. While the trillion dollar bailout package the EU announced for Greece shows a resolve to bolster the Euro, it leaves a lot of room to fear that should bigger economies than Greece also falter that no money will be able to save them.

4. The lack of solidarity within the Euro-zone and the very different nature of the economies within it and the cultures of the various members have exposed the EU as an incohesive group that is not yet clear on its future. This leaves great doubt as to the future.

So, my prediction is that 2010 will continue to be a bleak year for the Euro. Forex Predictions For 2010